Just read on gameplanet.co.nz:
Rather than trying to program enemy AI to think, behave and play like a human, developers simply imbue them with increased hit points, better statistics, or any number of favourable benefits whilst removing the same attributes from the players themselves. Manipulating these variables commonly forms the structure of a difficulty level.
In the quest to present the player with an action-packed experience, developers often sacrifice realism to keep the story flowing, or keep the participant at the crest of a wave. It's unlikely, after all, that precise emulation of a Special Forces raid in war-torn Afghanistan would lend itself well to the gaming public.
Why do I blog this? Artificial Intelligence is one of these Holy Grails some people are looking for. The term itself is fascinating as it encapsulates some sort of magic. Referring to something as "AI" leads to some expectations on the part of the observers and it's funny to see how people in the video-game industry describes the evolution of such tech.